New Procurement Rules Hurt Low-income Workers
New draft government procurement guidelines will remove living wage protections for thousands of low-paid workers in Aotearoa New Zealand, said NZCTU Te Kauae Kaimahi President Richard Wagstaff.
“The Minister of Finance Nicola Willis has proposed a new rule saying that the Living Wage no longer needs to be paid in cleaning, catering, and security guard services that are procured by government. These workers now face the potential of significant pay cuts,” said Wagstaff.
“During a cost-of-living crisis, government should be lifting people’s wages and ensuring everyone has good jobs, but instead they are reducing the quality of life for thousands of New Zealand workers.
“The Living Wage is an important protection for workers, and its level is set by independent experts who look at the real cost of living for families. Taking this protection away won’t lead to better contracts or better services, it will only lead to higher profits for companies and a more exploited workforce.
“Nicola Willis claims that this protection will be replaced by a new ‘economic benefit rule’. There is nothing in that rule about wages, terms and conditions, worker protection, or income security. For this government, economic benefit clearly doesn’t mean any benefit for workers or their families.
“This is about to trying to lift the profits of companies at the expense of working people. It’s the same logic that brought back 90-day trials, removed Fair Pay Agreements, reduced sick leave, and cut the minimum wage in real terms.
“The NZCTU condemns these changes, which will worsen the material living standards for thousands of workers,” said Wagstaff.
https://union.org.nz/new-procurement-rules-hurt-low-income-workers/